Equifax becomes Paylink Solutions’ open banking partner
Equifax has partnered with fintech Paylink Solutions to automate its digital affordability solution using open banking data and APIs.
Paylink Solutions provides a digital affordability application used by banks and building societies.
Credit agency Equifax said its open banking service will enhance this affordability solution by allowing businesses to understand customers’ affordability quickly and accurately, to provide them with a suitable repayment solution and refer them for free debt advice if required.
Equifax said the solution will ensure that lenders are lending responsibly and protecting vulnerable customers from taking out unaffordable credit.
The credit agency estimates that the percentage of financially vulnerable people in the UK has almost doubled from 2.7 per cent to 4.4 per cent since 2020.
Meanwhile, the number of people setting up online accounts has risen during the pandemic, with around 15 per cent more people accessing open banking on their mobile device, Equifax noted.
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“After two years of severe disruption to our social and professional lives, 2022 is fast becoming a year we will remember for the extreme financial challenges faced by families up and down the country,” said Andy Sacre, product director of Equifax UK.
“At a time like this, open banking is coming into its own, helping credit providers, utility companies and telcos to gain a nuanced understanding of how much struggling customers really can afford to repay.
“This partnership with Paylink Solutions is a perfect example of onboarding a new tech solution at speed and will ultimately mean more people facing financial hardship in the UK will be receiving support that is tailored to their personal situation.”
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Susan Rann, chief executive of Paylink Solutions, said that the partnership will help solve the problem its clients’ customers are facing.
“People want to be able to share information safely and discretely and often that means doing so online,” she said.
“This also helps to save agent time sourcing information manually, and improves accuracy when determining consumers’ income, expenditure and ultimately what they can afford to repay.”